Translate this page:
Please select your language to translate the article


You can just close the window to don't translate
Library
Your profile

Back to contents

Trends and management
Reference:

Golomolzina, N.V. Inframarginalism as a vector for the development of the modern economic science.

Abstract: The inframarginal economics is a rather new division within the economic science, and it is based upon the inframarginal analysis with the attention focused upon the problems of an economic organization. The article discusses the nature of inframarginal analysis, and the theoretical bases, which distinguish inframarginalism from marginalism within the neo-classical economic theory. The author shows importance of the inframarginal approach for the development of the modern economic science. In this article the inframarginal analysis is viewed through the prism of economic theory. The complex study in the perspective of a neo-classical model and the model by A. Smith allows one to draw conclusions on the place of inframarginal analysis in the process of searching for the business solutions. While the neoclassical approach concentrates upon the optimum distribution of limited resources, the inframarginal economy pays attention to the economic organization problems. Many economic goals are not limited to resource allocation, since such an attitude would leave some important economic development issues relating to the type of economic organization outside the scope of analysis. An illustration to the difference between the organizational and distributional criteria may be found in the «deadweight» monopolies, which is a negative factor from the resource allocation standpoint, while it is not that obvious when one is to evaluate the perspectives of scientific technological progress. Finally, the main reason for the changes in the economic development is related to the issues of economic activity organization.


Keywords:

inframarginal economics, inframarginal analysis, neo-classical approach, classical model, economic organization, economic science, structural qualities, economic solutions, individual specialization, costs.


This article can be downloaded freely in PDF format for reading. Download article


References
1. Koopmans T. C. Three Essays on the State of Economic Science. New York: McGraw-Hill, 1957.
2. Arrow K. J. The Economic Implications of Learning by Doing // Review of Economic Studies. 1962. Vol. 29, pp. 155-173.
3. Coase R. The Marginal Cost Controversy // Economica. 1946. Vol. 13, rr. 169-182.
4. Pigou A. C. War Finance and Inflation. Neal, Larry, ed., Elgar Reference Collection. International Library of Macroeconomic and Financial History series. Aldershot, U.K.: Elgar. 1940. Vol. 12.
5. Buchanan J. M., Stubblebine W. C. Externality // Economica. 1962. Vol. 29, rr. 371-384.
6. Arrow K. J., Hurwicz L., Uzawa H. Studies in Linear and Non-linear Programming. Stanford University Press. Stanford. 1958.
7. Ng Y.-K., Yang X. Effects of Externality-Corrective Taxation on the Extent of the Market and Network Size of Division of Labor // Working paper. Monash University. 2001.
8. Yang X., Liu W.-M. Inframarginal Economics. Increasing Returns and Inframarginal Economics-Vol. 4. Singapore: World Scientific Publishing Co. Pte. Ltd. 2009.
9. Liu P.-W., Yang, X. Division of Labor, Transaction Cost, Evolution of the Firm and Firm Size // Journal of Economic Behavior and Organization. 2000. Vol. 42, pp. 145-165.
10. Yang X. A Microeconomic Approach to Modeling the Division of Labor Based on Increasing Returns to Specialization. Ph.D. Dissertation, Dept. of Economics, Princeton University. 1988.
11. Wen M. Infrastructure and Evolution in Division of Labor // Review of Development Economics. 1997. Vol. 1, pp. 191-206.
12. Yao S. Walrasian Equilibrium Computation, Network Formation, and the Wen Theorem // Review of Development Economics. 2002. Vol. 6, pp. 415-427.
13. Yang X. Endogenous vs. Exogenous Comparative Advantages and Economies of Specialization vs. Economies of Scale // Journal of Economics. 1994. Vol. 60, pp. 29-54.
14. Cheng W., Sachs J., Yang, X. An Inframarginal Analysis of the Ricardian Model // Review of International Economics. 2000. Vol. 8, pp. 208-220.
15. Cheng W., Liu M., Yang X. A Ricardo Model with Endogenous Comparative Advantage and Endogenous Trade Policy Regime // Economic Record. 2000. Vol. 16, pp. 172-182.
16. Yang X. Development, Structure Change, and Urbanization // Journal of Development Economics. 1991. Vol. 34, pp. 199-222.
17. Sachs J, Yang X., Zhang D. Globalization, Dual Economy, and Economic Development // China Economic Review. 2000. Vol. 11(2), pp. 189-209.
18. Yang X., Shi H. Specialization and Product Diversity // American Economic Review. 1992. Vol. 82, pp. 392-398.
19. Shi H., Yang X. A New Theory of Industrialization // Journal of Comparative Economics. 1995. Vol. 20, pp. 171-189.
20. Borland J., Yang X. Specialization, Product Development, Evolution of the Institution of the Firm, and Economic Growth // Journal of Evolutionary Economics. 1995. Vol. 5, pp. 19-42.
21. Yang X., Borland J. A Microeconomic Mechanism for Economic Growth // Journal of Political Economy. 1991. Vol. 99, pp. 460-482.
22. Yang X., Borland J. The Evolution of Trade and Economic Growth. Mimeo: University of Melbourne, 1991.
23. Wen M. Division of Labor in Economic Development. Ph.D. dissertation, Dept. of Economics, Monash University, 1997.
24. Chu C. Productivity, Investment in Infrastructure, and Population Size: Formalizing the Theory of Ester Boserup // Review of Development Economics. 1997. Vol. 1, pp. 294-304.
25. Chu C., Wang C. Economy of Specialization and Diseconomy of Externalities// Journal of Pubpic Economics. 1998. Vol. 69, pp. 249-261.
26. Fang X., Zhu, T. Institutional Imperfection and Transition Strategies // Economic Systems. 1999. Vol. 23, pp. 331-348.
27. Ng Y.-K., Yang X. Effects of Externality-Corrective Taxation on the Extent of the Market and Network Size of Division of Labor. Seminar Paper, Department of Economics, Monash University, 2000.
28. Yang X., Ng Y.-K. Theory of the Firm and Structure of Residual Rights // Journal of Economic Behavior and Organization. 1995. Vol. 26, pp. 107-28.
29. Liu P.-W., Yang X. Division of Labor, Transaction Cost, Evolution of the Firm and Firm Size // Journal of Economic Behavior and Organization. 2000. Vol. 42, pp. 145-165.
30. Wen M. An Analytical Framework of Consumer-Producers, Economies of Specialisation and Transaction Costs, in K. Arrow, Y-K. Ng, X. Yang eds. Increasing Returns and Economic Analysis. London: Macmillan, 1998.
31. Cheng W., Sachs J., Yang X. An Inframarginal Analysis of the Heckscher-Ohlin Model with Transaction Costs and Technological Comparative Advantage // Harvard Center for International Development Working Paper. 1999. Vol. 9.
32. Yang X., Wills I. A Model Formalizing the Theory of Property Rights // Journal of Comparative Economics. 1990. Vol. 14, pp. 177-198.
33. Li K., Smyth R. Divisions of Labour, Specialization and the Enforcement of System of Property Rights: A General Equilibrium Analysis // Pacific Economic Review. 2004. Vol. 9, pp. 307-26.
34. Shi H., Yang X., Zhang D. A General Equilibrium Model of e-commerce with Impersonal Networking Decisions, working paper, Monash University, 2003.
35. Cheng W. Specialization and the Emergence and the Value of Money. In K. Arrow, Y-K. Ng, and X. Yang eds. Increasing Returns and Economic Analysis, London: Macmillan,1998.
36. Yang X., Ng Y.-K. Specialization and Economic Organization, a NewClassical Microeconomic Framework. Amsterdam: North-Holland, 1993.
37. Yang X. The Division of Labor, Investment, and Capital // Metroeconomica. 1999. Vol. 20, pp. 301-324.
38. Yang X., Rice R. An Equilibrium Model Endogenizing the Emergence of a Dual Structure between the Urban and Rural Sectors // Journal of Urban Economics. 1994. Vol. 25, pp. 346-368.
39. Sun G., Yang X. Evolution in Division of Labor, Urbanization, and Land Price Differentials between the Urban and Rural Areas // Harvard Institute for International Development Discussion Paper.1998. Vol. 639.
40. Du J. Endogenous, Efficient Long-run Cyclical Unemployment, Endogenous Long-run Growth, and Division of Labor // Review of Development Economics. 2000.
41. Lio M. Uncertainty, Insurance, and Division of Labor // Review of Development Economics. 1998. Vol. 2, pp. 76-86.
42. Zhao Y. Concurrent Evolution of Division of Labor and Information of Organization // Review of Development Economics. 1999. Vol. 3, pp. 336-353.
43. Shi H., Yang X. Centralised Hierarchy within a Firm vs. Decentralised Hierarchy in the Market, in K. Arrow, Y-K. Ng, and X. Yang eds. Increasing Returns and Economic Analysis. London: Macmillan, 1998.